AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Question I have a single member LLC formed in Dec 2006 with an EIN in New Mexico.
I now wish to hire my wife and daughter.
What forms of payroll taxes other than SS and MC are imposed on family member employees?
Thanks
Answer Keith,
Thanks for your question.
If you daughter is under 18 and doing legitimate work, you do not have to pay SS/Medicare for her.
You will need to file quarterly Form 941 to report your income tax and SS/Medicare withholdings and payments. Depending on the amounts involved you may need to make payments of your tax liability as frequently as weekly. IRS Circular E can guide you on this.
You will need to prepare and file annually W-2's for each.
In addition, you may be subject to withholding for state income taxes and also for payment of state unemployment. State laws vary, however, and you may not be subject to both of these.
